# Cash Basis Corporate Tax Reconciliation

> Reconcile conflicting revenue sources and prepare Form 1120 for cash-method C-Corps using bank deposits as authoritative source

- Skill: `vamseeachanta/cash-basis-corporate-tax-reconciliation` (Agent Skill)
- Install (CLI): `npx skillmds@latest add vamseeachanta/cash-basis-corporate-tax-reconciliation`
- Raw SKILL.md: https://api.skillmd.com/api/skills/vamseeachanta/cash-basis-corporate-tax-reconciliation/raw
- Safety review: PASS (external: skill-scanner PASS, skillspector PASS)
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Finance & Business
- Author: vamseeachanta (https://skillmd.com/u/vamseeachanta)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/vamseeachanta/cash-basis-corporate-tax-reconciliation

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# Cash-Basis Corporate Tax Reconciliation

When preparing Form 1120 for a cash-method C-Corp with conflicting revenue records (invoices vs. bank deposits), establish the expense/bank-activity sheet as the source of truth—it reflects actual cash receipts, not invoice dates. Map every line of the authoritative expense sheet directly to Form 1120 and Schedule L line items. For entities without prior-year returns, reconstruct beginning-of-year balances from known liabilities (e.g., outstanding loan principal) and work backward to validate the equity position. This approach resolves revenue timing disputes and ensures Schedule M-1 reconciliation aligns with cash-basis accounting rules.